Despite the Internet's increasing importance, there is little social scient
ific work that addresses its diffusion. Our knowledge is especially limited
with respect to the conditions that encourage its spread across nations. T
his paper takes a first step in explaining the differences in Internet conn
ectivity among OECD countries. After examining the impact of economic indic
ators, human capital, institutional legal environment, and existing technol
ogical infrastructure, the empirical analyses show that economic wealth and
telecommunications policy are the most salient predictors of a nation's In
ternet connectivity. (C) 1999 Elsevier Science Ltd. All rights reserved.